Doctors chew over medical indemnity package

AM - Thursday, 18 December , 2003 08:00:00

Reporter: Alison Caldwell

DAVID HARDAKER: The Federal Health Minister, Tony Abbott, has managed to calm the waters but the medical insurance indemnity crisis still threatens to get out of control, according to some doctors today.

While many welcomed Tony Abbott's rescue package at first glance yesterday, after taking another look, many remain concerned, and Mr Abbott's claim that doctors who leave now really wanted to get out all along appears to have hit a raw nerve.

We'll be hearing from the Health Minister shortly, but first Alison Caldwell with this report.

ALISON CALDWELL: Professor John Dwyer is with Sydney's Prince of Wales Hospital. Back in October when the threat posed by the medical indemnity crisis became apparent, Professor Dwyer wanted a moratorium.

Two months on, he says the Federal Government's package appears to be a step in the right direction, at least in the short term.

JOHN DWYER: Look, I think the fact that more than $600-million of tax payers' money is being put into the system, it should be seen as a signal that there's something dreadfully wrong with the system. That's an enormous amount of money that's not really productive in terms of producing any additional help.

And the major message I think many of us would have for the Government is look, thanks for pouring some water on the bushfire. You haven't quite put it out. But really, we want to look at planting an entirely new forest and getting on with tort reform and looking seriously at no-fault insurance and what other countries are doing to solve this problem and that does require a major rethink.

ALISON CALDWELL: Tony Abbott yesterday, the Minister for Health, said that any doctor who persists with his or her resignation after this really, obviously, wants to get out for other reasons. Is that fair?

JOHN DWYER: No, I don't think that's fair. I think, you know, that you've still got people who are going to have to be paying an awful lot of money out every year, and that's going to leave them with the dilemma of whether to pass those costs onto their patients or try and absorb them, work longer hours.

But I think it's probably true the majority of doctors will now hold off on resigning. But I think the bushfire will flare again very quickly, Alison, if we don't really settle down with the appropriate expert committee to look at how we want to reform the whole health care insurance industry in Australia. There's numerous good ideas out there that the Government can build on to give us a much fairer and much better system.

ALISON CALDWELL: In Queensland, where hundreds of specialists threatened to stop working in public hospitals unless the levy was scrapped, the Federal Government's package receives a cautious welcome from the AMA's President there, Dr Ingrid Tall.

INGRID TALL: Doctors have seen a 50-fold increase in their premiums over the last 15 years. There has been a 15 per cent compounding annual increase in the frequency and size of awards, and something needed to give.

This is a package that does improve the situation, that does give greater security to doctors.

ALISON CALDWELL: Dr Ingrid Tall, the President of the Queensland AMA. Alison Caldwell with that report.